A durable power of attorney is a legal document that a person (the principal, grantor, or donor) signs to appoint another person as the grantor’s agent or attorney-in-fact—with authority to make financial and property-related decisions on behalf of the principal—including transactions involving business interests, investments, insurance, taxes, bills, real estate, stocks, bonds, commodities, personal property, Social Security, Medicare, Medicaid, and other financial matters.

A traditional power of attorney is effective only while the principal has full mental capacity, but a durable power of attorney remains effective if the principal becomes physically or mentally disabled or incapacitated (incompetent) from a stroke, Alzheimer’s disease, an automobile accident, or other cause. In some states the legislature has provided a form durable power of attorney in a statute (law) and the document may be referred to as a statutory durable power of attorney.

In Iowa, a durable power of attorney is a legal instrument that allows an individual (the principal) to designate another person (the agent or attorney-in-fact) to manage their financial and property affairs. This includes handling business matters, investments, insurance, taxes, and government benefits among other financial decisions. Unlike a traditional power of attorney, which loses its validity if the principal loses mental capacity, a durable power of attorney in Iowa remains effective even if the principal becomes incapacitated due to various causes such as illness or injury. Iowa law provides for the creation of such documents, ensuring that the principal's affairs can be managed according to their wishes even when they are unable to make decisions themselves. It is important for the document to be properly drafted and executed in accordance with Iowa law to ensure its effectiveness, especially during periods of incapacity.